Japan’s currency has fallen 6.9 percent this year, the most among the 10 developed currencies measured by Bloomberg Correlation-Weighted Indexes. The euro is the second-worst performer, losing 2.8 percent, while the dollar has declined 1.2 percent.
The dollar may rise to an eight-month high versus the yen after ending last week above a key technical level, according to CMC Markets Plc, citing trading patterns.
“Last week saw the U.S. dollar close above the weekly ichimoku cloud for the first time since April, which should be bullish,” London-based analyst Michael Hewson wrote in an- emailed note today. “The next and key resistance lies at the 81.80 area -- the April 20 high --- a break of which could be the catalyst for a move towards the March highs above 84.”
Ichimoku charts are used to predict a currency’s direction by analyzing the midpoints of historical highs and lows. The conversion line plots the sum of the highest high and lowest low over the last nine trading days. The baseline is the same calculation over the past 26 days.